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Babylon Genesis: Post TGE, An Undervalued Play on BTCfi?
Jake Kennis
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Key Takeaways
12 min read
  • BABY just had its TGE yesterday and it can potentially offer a compelling way to gain exposure to BTCfi growth without directional risk to specific L2s or projects. Given the backdrop of Bitcoin’s long-term adoption trends and its ability to be used productively onchain, BABY can be a very interesting opportunity here.
  • Despite the compelling opportunity, current market volatility raises uncertainty about the immediate demand for another restaking platform. However, Babylon has quickly demonstrated traction—securing over 0.25% of Bitcoin's supply (worth over $4B USD) in under a year—and continues executing effectively against its roadmap with clear future catalysts including Bitcoin Secured Networks (BSNs).

Introduction

Babylon Chain is a Bitcoin-secured Cosmos-based network that extends Bitcoin’s security to PoS blockchains and rollups alike. Put simply, it allows Bitcoin holders to stake BTC trustlessly (without wrapping or bridging funds) and earn rewards for securing other networks. In other words, Babylon allows BTC to be trustlessly restaked for additional use cases. This Bitcoin restaking approach is similar in practice to Eigenlayer where it unlocks new avenues such as yield opportunities via liquid staking tokens (LSTs) – so BTC holders can earn staking rewards and even use tokenized staked BTC in DeFi – all while maintaining self-custody of their bitcoin. For those looking into a deep dive into what Babylon is at a...